Technical Analysis of GBP/CHF for April 19, 2016

The GBP/CHF pair is seen to be trading at 1.3785/90 levels for now, looking to form a top and reverse lower, at least towards 1.3550/1.3600 levels before finding support. Please note that the pair had broken past its resistance trend line and entered into the buy zone earlier. The wave structure also reveals that the rally from 1.3382 through 1.3785 levels looks to have unfolded into 5 waves. It is most likely that a corrective (3 waves) drop would push the pair lower towards 1.3550/1.3600 levels at least. It is hence recommended to remain short from here with risk at 1.3950 levels. Immediate resistance is seen at 1.3950 levels, while support is seen through 1.3640 levels respectively.